ABC Perhead Articles

Understanding Cyclical Business

There are lots of literature around businesses, thus for many years academics tried to understand and document how the business world works in order to teach young generations about the best practices and how avoid them the pain of making a mistake that can cost millions of dollars.

Since the gambling industry has become a formal and legal way to do business, many bookies are begging to learn and apply theories from the business academics into their own companies, one of those theories is the concept of cyclical business. Let's break down the concept and see how it is applied to the gambling industry:

A cyclical business is a type of industry that is sensitive to volatility changes due to external factors; this could mean that revenues are generally higher in specific periods of time, for example in the retail industry you know your revenues will be higher on warmer clothes on winter season, but it would decrease in the summer and the cycle will repeat each year with the same results.

The same happens in the gambling industry, most bookies rely on big sports events that happen in specific times of the year such as the NFL season or March Madness, leaving them with a revenue gap during the offseason. Bookies need to identify their business cycle and where the times of the year they reach high revenues are, this will help them make the right decisions about what to do on the low revenue periods and create a strategy that can keep the business profitable.

To understand and spot the gambling behavior of your players, you have to use the tools provided by your pay per head partner. Through the betting management software you can see in what sports you get more wagers and on what months, this will help you outline your business cycle and make the right moves at the right time.

If you really want your betting site to grow and generate good revenues, you need to understand everything that happens within your betting business, and for that you need to become a business manager more than a bookie.